Episode #2 of The #AskJulieC Real Estate Show is now LIVE! This season is packed with content, and although my goal is always to get the point across in 3 minutes or less there is just too much value to cut that much! But I know most of you are readers or not in a place where video is socially acceptable to watch, so I will always make an effort to go more in depth here.
Without further ado here are the 3 Things You Need To Know About The VA Loan NOW!
One of the quickest ways to make money in life is Real Estate! Fact. I built this site to make you rich, this show is to make you rich. The goal is always to help you build those healthy financial habits for the purpose of cultivating long term wealth, but heck, we all gotta eat! So I share with you something most millionaires figured out early... Real Estate is the QUICKEST way to get rich! No schemes, No gimmicks! And the VA Loan is set up in a way that amplifies your investment capabilities. These three things will help you get started in buying a home with the VA Loan.
#1) The VA Loan Is Reusable: I'm not here to say I was born with all this knowledge, in fact, how in the dark I once was benefits you in that I know what some of you are thinking. The VA Loan is not a one-shot deal like many of our entitlements. The VA benefit is actually set up in a way that would allow you to buy a home at each base you're stationed. This can add up quickly. As you move around you can either cash in and sell of your property, or rent it out to another family and let them pay your mortgage while you go and buy another one! So why are so many military families waiting to buy? Oh, you want to wait until you get settled out of the military, ok.... Bad idea for multiple reasons: you won't have job stability which will severely hinder your ability to qualify, and you will not be able to set yourself up to maximize your investing opportunity because you do need to purchase each home as a primary residence to begin with. Oh, you might get orders to Korea tomorrow? hmmm, well you don't have the orders yet, why not purchase and rent the home out once you leave and again let someone else pay your mortgage? If that isn't enough consider the next thing you need to know.
#2) You Do NOT Need A Down-Payment To Buy A Home Using The VA Loan: This means you do not need to bring funds to the table for the down-payment, however you do need to know you will still incur closing costs but these costs are entirely negotiable, so make sure you choose a Realtor you trust to negotiate well on your behalf. So now you have a benefit which allows you to buy a home with no down-payment, and consider this; appreciation rates are skyrocketing right now on Residential Real Estate!
In fact, appreciation rates are nationally averaged right around 4% ( to put this in perspective a "high yield" savings account will rarely even hit 1% appreciation). BUT many cities near military installations have appreciation rates well above 15%! The Phoenix Metropolitan Area is actually ranked 4th Highest in the Nation for appreciation rates on residential property (click here for the proof). What this means is that you will see a return very quickly, especially considering how little you have to come out of pocket when buying a home with the VA Loan. Even if you did get those PCS orders sooner than anticipated, you are still looking at a very quick return on investment, or the opportunity to buy again using your VA Loan! You cannot accomplish this multi-city set up once you get out because the initial purchase has to be for a primary residence so do NOT wait! With appreciation rates like this and interest rates at all time lows, waiting to buy a home could actually be costing you money as rent continues to go up (in the Phoenix metro as much as 23%!). To really trump any other hesitance you may have think about how risk free it is..
#3) Short Sales Can Be Forgiven: When buying a home with the VA Loan, there are many factors in place which protect the buyer from various common pitfalls. This is one of them. So say you are worried you buy a home near Luke AFB then the market crashes very unexpectedly AND you get orders to PCS in 3 months to Nellis AFB; even though its just a 4.5 hour commute, you just aren't feeling it and you ABSOLUTELY don't want to be a landlord. Whish goes the wand, you can short sale your house and get out from under it with little penalty. PLUS you can go on to use the VA Loan again after 2 years! In a traditional loan having a Foreclosure or Short Sale is a black mark that takes far more to get rid of although it is possible.
All in all, the VA Loan entitlement is the most under-rated tool in your benefits arsenal. STOP GIVING AWAY YOUR BAH to outdated on base housing, or to pay someone else mortgage and profit margins! Just make sure you utilize a Realtor that is intimately familiar with this process, and find them FIRST as they will be able to best direct you to the right lender to save you money. Just about any lender can write a VA Loan but their pricing is all different, so it is not the best choice to use your big bank or military targeted credit union they simply don't have the capability of competing in one on one customer service tailored to your unique needs as a military home buyer. Also, the pricing will be vastly different so this choice is crucial.
You can ALWAYS contact me with questions or to get started by filling out the form on bottom of the home page or by emailing me directly at firstname.lastname@example.org.
There has been A LOT of vital information in this episode to consider, so spread the word. Oddly enough, the military doesn't take time to teach you this stuff. And that's why I am here educating you on how to buy a home with the VA Loan, along with teachings on healthy financial habits, military lifestyle tips, moving tricks, and EVERYTHING Real Estate.
Thank you for your support, if you have ideas for future episodes send them over via email (click here) or message me on Facebook https://www.facebook.com/juliecalza
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We'll See You Soon!